The central bank conducted reverse repo operations worth 1.4 trillion yuan ($140 billion) through outright purchase today, with a clear intention to support the market by increasing the volume for two consecutive months 0717

Today, the People's Bank of China (PBOC) conducted 1,400 billion yuan in outright reverse repo operations. Among these, 800 billion yuan were for a 3-month term and 600 billion yuan were for a 6-month term. Today marks the tax payment deadline, and mid-week will see tax-related outflows. Given the 1.2 trillion yuan in outright reverse repos and 300 billion yuan in medium-term lending facility (MLF) maturities in July, the PBOC's commitment to safeguarding liquidity in the banking system is evident. Industry insiders told Caixin reporters that the PBOC's continuous net injection of funds through outright reverse repos over the past two months has helped maintain ample liquidity in the banking system amid the peak period of government bond issuances. It has also signaled a continued strengthening of quantitative monetary policy tools, facilitating the process of credit expansion.


After the PBOC broke with the practice of announcing reverse repos at month-end in June, issuing announcements on June 5 and June 13, it announced outright reverse repo operations again mid-month in July. Wang Qing, chief analyst at Dongfang Jincheng, told Caixin reporters that this shift from month-end to mid-month announcements of outright reverse repos indicates increased transparency in monetary policy operations and a further refinement of communication mechanisms, enabling more effective guidance and stabilization of market expectations. In terms of volume, a total of 1.2 trillion yuan in outright reverse repos will mature in July, with 700 billion yuan maturing in the 3-month term and 500 billion yuan in the 6-month term. The PBOC conducted 1,400 billion yuan in outright reverse repo operations this month, resulting in a net injection of 200 billion yuan in outright reverse repos for the second consecutive month.11, revised content